Trump Gives Tax Breaks to Car Buyers — But Who Really Wins?
New Auto Loan Tax Break Benefits US-Built Vehicles, But Middle-Class Savings Remain Modest July 2025 — A new tax deduction buried in the "One Big Beautiful Bill Act" signed into law on July 4th promises to help American car buyers save on auto loan interest, but the benefits are targeted specifically at purchasers of US-assembled vehicles and may deliver more modest savings than the $10,000 maximum suggests. Which Vehicles Qualify The legislation allows buyers to deduct up to $10,000 in auto loan interest for vehicles purchased between 2025 and 2028, but only for new vehicles under 14,000 pounds that are assembled in the United States. This requirement positions several major manufacturers to benefit: Compact Sedans Assembled in the US Honda Models (Greensburg, Indiana): Honda Civic Hatchback - Currently produced at Honda's Indiana Auto Plant alongside the CR-V Honda Accord - Production moved from Marysville, Ohio to Greensburg, Indiana in 2025 as part o...